An Auditor Discovers a Likely Fraud During an Audit but Concludes

question 15

Multiple Choice

An auditor discovers a likely fraud during an audit but concludes that the overall effect of the fraud is not sufficiently material to affect the audit opinion.The auditor should probably

• A) Disclose the fraud to the appropriate level of the client's management.
• B) Disclose the fraud to appropriate authorities external to the client.
• C) Discuss with the client the additional audit procedures that will be needed to identify the exact amount of the fraud.
• D) Modify the audit program to include tests specifically designed to identify the fraud and its impact on the financial statements.